Member Info for NigeCo

With S4 setting their past and present merger/acquisitions price @425p per share, this IMO is what I think Martin Sorrell thinks is fair value for S4. Although, I don't think that he would sell out, S4 Capital is his baby. I would be happy with this price at this moment in time, who wouldn't right? But longer term, I think that S4 will go much higher than 425p per share. Not forgetting that SMS holds a golden share. I personally don't see him selling out. More chance that we will have a USA listing on the NASDAQ & raise some equity for further M&A going forward. This would make perfect sense IMO with 70%+ of its business in the US.

Patience needed guys. S4 are trading currently at just 1X earnings, 1X earnings for a company that has 25% growth is very good value. Is there a better buy on the stock market than S4 right now? I doubt it. Cheap as chips.

"So now we are under 120p following the FT100. Fall started just after noon and has accelerated since then. Wonder why, what ,who. Any clues out there ?"

I just about remember a time when utilitie stocks were classed as defensive, and in times like we are currently experiencing would be regarded as a safe haven. Sadly those days have long gone. I'm not sure how the market can justify the valuations of many British companies. Shocking. My only conclusion is that algorithm short trading is to blame.

AbjectPerformer........ "Most beneficiaries are higher paid. As that’s the main bulk of workers. They are receiving 3.5-4% pay"

I'm not going to get it to an argument, but I question the above. So if I take you at your word AP, the bulk of BT workers are higher paid, yet the CWU would have us believe that BT workers are on the breadline at food banks. Of which I very much doubt. My nieces husband is an Openreach engineer and they are far from on the breadline. So I don't beleive this narrative for one minute, that in my opinion is aimed to receive the general public sympathy vote.

Just taking a look back to see what date Q3 results were announced last year, and it was on 10th November (2020 9th November) All being well, S4 should be announcing them on or around the 11th November, one month from today hopefully.

Smasher, you fail to mention that BT shareholders went without a dividend for 2 years. When dividends were resumed after Covid, they were restarted with a 50% reduction down from 15.4p to 7.7p. BT employee's didn't take a 50% wage cut through this dificult time, unlike BT's owners/shareholders. My impression is that some BT workers are a little ungrateful.

I would echo what Barbacoa & Pearls have said.

My take on the H1 results and presentation is that Q3 & more so Q4 are going to be very strong end to the financial year. Management will set out our future plans for next year in Q3. Next year I don't see S4 doing any M&A especially with S4 setting a share price limit of 425p that S4 doesn't want to breach (protecting shareholder value).

With S4 Gross Margin currently running @81.86% it shouldn't be too difucult for S4 to return to profit next year. The share price will re rate over the next 3-6 months IMO, patience needed, but good reasons for holding.

WouldBGatsby, I think that you're right, SMS hasn't worked for 4 years (taking only a small salary, its not about money for him.) setting up S4 Capital to sell out now.

SMS will take great pleasure I'm sure in proving WPP wrong. Along with the City for knocking 86% off the share price. Time may not be on his side at 77 years of age. But when I watch recent interviews with SMS he is as sharp as they come. I for one wouldn't back against him in a two horse race.

SFOR.L
S4 CAPITAL
Last Signal: STAY LONG
Last Pattern: NO PATTERN
Last Close:
170.4000
Change:
+15.8000
Percent change
+10.22%

Signal Update
Our system’s recommendation today is to STAY LONG. The previous BUY signal was issued on 03/10/2022, 1 day ago, when the stock price was 150.1100. Since then SFOR.L has risen by +13.52%.

Market Outlook
You may relax since our STAY LONG position is secure. The market action does not cast a serious doubt on the wisdom of going long.

https://www.britishbulls.com/SignalPage.aspx?lang=en&Ticker=SFOR.L

Just hit 173.60p. Short squeeze?

Two Martin Sorrell interviews recently added to youtube.

https://www.youtube.com/watch?v=fKwPiBFzL6U

https://www.youtube.com/watch?v=xmYT_su4Btc

I forgot to say that the loan stock may have dropped further over the past 2 trading days, considering the strong move in the share price. Obviously, we won't find this out until early next month. Cheers.

Auson, thanks for the update mate, very much appreciated.

Verry good news, a drop of 1.44%. I was even thinking that it may have increased with the market volatility of the last few weeks.

S4 Capital share price picking up some strong momentum this week so far.

today 4 Oct, 09:51 BST 164.60 GBX +10.00 (6.47%)

"It seems to me S4 should have a 15% SP rise just based on currency exchange ?? issues over the last year. Remembering S4 Accounts are in GBP £."

Share price currently up 6%. Market waking up to the fact that S4 are too cheap.

https://simplywall.st/stocks/gb/media/lse-sfor/s4-capital-shares/news/we-like-these-underlying-return-on-capital-trends-at-s4-capi

Steven49........ "Director buying of late Spiralling costs remain a risk to profits Colin day on board, could be a turn around story, worry is advertising could slow as resession bites in"

I'm hopeful that S4 won't be affected by the potential resession. In fact when Covid struck it helped speed up the transition from analog to digital advertising. So IMO we have reasons to be hopeful.

Martin Sorrell.... "whilst traditional media languish, and there is evidence that demand accelerates during periods of economic uncertainty as we saw with Covid in 2020, when we performed strongly".

https://www.lse.co.uk/rns/SFOR/results-for-first-half-2022-9dxipa0j4qf7o74.html

"The strike action and dispute with the unions is what's hitting the share price"

I suspect that the striking BT workers will convince themselves of the above. I agree with Fleccy & NDN. The strike is not to blame for the share price weakness. In all likelihood BT will be saving millions on wages and pension contributions. With the energy prices going up from today contibuting further to the already high cost of living, how long can the stirkers afford to carry on with their strikes? Let's see who blinks first Strikers or Jansen. Jansen has made it clear that there will be no increase from the generous £1,500 offered. Time will tell.

Yes the BT share price has managed to complete 10 consecutive down weeks. Or 11 down weeks from 12. I will stick my neck out and say that next week will be an up week for the BT share price. Odds are in my favor right?

Q3 & Full Year results should help re rate S4 Capital.
Once inflation peaks, we should see a big market rally, may be next year. IMHO.

Wise words WouldBGatsby,

I also think that the writting is on the wall for Truss, she really hasn't done herself any favours with her reckless plan. Had the bank of England not intervened yesterday buying gilts at the cost of billions to the UK tax payer, some pensions would have been toast. The concervative party elected the wrong candidate IMO. Sunak to the rescue. However, I feel the damage to the concervative party may well cost them at the next general ellection.